Liquidity

Liquidity Trends Report: Perspectives From Private Company Leaders

Liquidity events are critical to private companies that want to attract talent, align stakeholders, and sustain long-term growth. The 2026 Liquidity Trends Report shows rising employee and investor pressure, increasing IPO aspirations, and a growing readiness gap—highlighting the need for earlier planning, clearer communication, and trusted liquidity partners.

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The 2026 Liquidity Trends Report reinforces a wave that has been building for several years: private companies that offer equity compensation are increasingly using interim liquidity events to attract and retain talent and drive long-term growth.

 

The data shows a balance between near-term plans and long-term ambition: 47% expect a tender offer to be their next liquidity event, while 57% say their ultimate goal is an IPO—up from 45% last year.

 

Based on survey responses from 150+ private company executives and decision makers across growth-stage and late-stage private organizations, this year’s report shares benchmarks and practical strategies to navigate today’s evolving liquidity landscape.

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Four Key Survey Findings

  1. 1
    Liquidity is making equity a more powerful talent strategy

    99% of respondents agree that equity compensation is a powerful driver of talent attraction and retention. Its impact depends on employees being able to convert equity into real-world outcomes.

  2. 2
    Liquidity is becoming a core growth and stakeholders management tool

    Beyond attracting and retaining talent, 69% say liquidity events are important to achieving long-term growth goals, and 88% are feeling pressure to facilitate a liquidity event. Many are pairing capital raises with employee liquidity and using tender offers to provide access to value while maintaining strategic flexibility on their path to IPO.

  3. 3
    Many companies face a liquidity readiness gap

    While many private companies have taken steps to prepare for a liquidity event, only 26% feel confident about their readiness. Key concerns include valuations, tax implications, event administration and delivering the education required to drive employee participation, prompting leaders to seek experienced financial partners. 

  4. 4
    Employee guidance is critical to making liquidity successful

    Private companies estimate that 41% of their employees struggle to connect liquidity events to their financial plans, and 37% struggle to understand tax implications of liquidity decisions. Companies should equip employees to make informed liquidity-related decisions by providing clear communication, financial guidance, and ongoing support—particularly for those participating in liquidity events—to drive meaningful outcomes.

Frequently Asked Questions

 A liquidity event allows shareholders, often employees, to convert private equity into cash. Common examples include tender offers, secondary sales, acquisitions, and IPOs.

Tender offers provide controlled, flexible liquidity without forcing a full exit. They allow companies to reward employees, manage cap tables, and maintain strategic optionality.

Best-in-class companies begin planning years in advance, aligning legal, tax, financial, and communication strategies well before the first liquidity event.

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